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Top 3 Deadly Mistakes CalPERS Had Made in Institutional Real Estate

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The California bear-of-an-investor has struggled with its public fund peers when it comes to real estate return performance.

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With roughly US$ 31.8 billion generously allocated toward real assets, the California Public Employees’ Retirement System (CalPERS) continues to compete for real estate in developed markets such as North America and Europe. Here are three major mistakes by CalPERS with regard to its unlisted property portfolio.

Returns CalPERS Real Estate Returns Real Estate Policy Benchmark
1-Year 7.1% 12.6%
3-Year 11.5% 12.6%
5-Year 12.4% 12.1%
10-Year -0.5% 8.7%

 

Unhealthy Adventurism

In 2005, CalPERS went on a shopping spree in real estate, getting entangled in complex land deals and mega portfolio purchases – all the while using leverage at times to spice up returns. After the global shakeout of 2007 and 2008, CalPERS got burned on a number of property deals. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Follow the Money – Episode 45

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This longer-than-normal episode covers a wide range of issues including such as sovereign wealth funds, bitcoin, cryptocurrencies, Indian real estate, ESG, investment exclusions, central banking and more.

EPISODE 45

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The views in this media are expressed by Michael Maduell and other participants and are not reflective of the Sovereign Wealth Fund Institute (SWFI).

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CalPERS Board Elects Priya Mathur as Board President

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The board of the California Public Employees’ Retirement System (CalPERS) elected Priya Mathur as board president. The current president Rob Feckner was named vice president of the board. Feckner previously served as board president and vice president.

Priya Mathur is serving her fourth term on the CalPERS Board of Administration. Mathur is a principal financial analyst for Bay Area Rapid Transit District (BART). Mathur represents public employees on the CalPERS Board, which she joined in 2002. She currently serves on four committees: Governance, Investment, Pension & Health Benefits, and Risk & Audit. She chairs the Pension & Health Benefits Committee and is vice chair of the Governance Committee.

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Oman SGRF Contemplates $1 Billion Infrastructure Fund

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Oman’s State General Reserve Fund (SGRF) is in discussions on forming a US$ 1 billion infrastructure fund. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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